SYNOPSIS ON

The Logistics function of DHL

Submitted By: BARUN KUMAR PGDM- T-7088

Submitted To : Prof. Ravi Kishore VVSB Hyderabad

Contents

Introduction Product Objective of Study Scope of study

INTRODUCTION
DHL quickly became a leader in international air express delivery shortly after the company was founded by Adrian Dalsey, Larry Hillblom and Robert Lynn in 1969. Initially the company operated a door-to-door express delivery service, transporting documents between San Francisco, California and Honolulu, Hawaii. With expansion into the Philippines, Japan, Hong Kong, Singapore and Australia the company soon became the leader in international overnight service. Now owned wholly by Deutsche Post, DHL is a part of a global network composed of more than 220 countries and territories and about 275,000 employees worldwide, generating 53 billion Euros in 2011. Origins of DHL The idea of an air delivery service for overnight packages was developed by Larry Hillblom who started a courier service between his home in San Francisco and Los Angeles. He would drive around to businesses and pick up packages for the last flight of the day from San Francisco, and returning on the first flight the next morning. The idea grew into delivering bill of lading documents by air to Honolulu ahead of the freight that arrived late. This saved time for the freight company when the goods arrived in Hawaii. The company expanded into Asia with deliveries to the Philippines, Japan, Hong Kong, Singapore and Australia, hiring one-time couriers as deliveries needed to be made. Within a year of incorporation DHL had over forty customers and operations including Guam and Portland, Oregon. By 1973, DHL had over 3,000 clients and expanded operations into New Zealand, Fiji, Indonesia, Taiwan, Malaysia and Thailand. A year later the volume of deliveries handled by the company had exceeded half a million per year. The DHL Network continued to grow at an incredible pace. The company expanded westward from Hawaii into the Far East and Pacific Rim, then the Middle East, Africa and Europe. By 1988, DHL was already present in 170 countries and had 16,000 employees.
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At the beginning of 2002, Deutsche Post World Net became the major shareholder in DHL. By the end of 2002, DHL was 100% owned by Deutsche Post World Net.In 2003, Deutsche Post World Net consolidated all of its express and logistics activities into one single brand, DHL

The world's largest express and logistics Network

DHL is the global market leader in international express, overland transport and air freight. It is also the world's number 1 in ocean freight and contract logistics. DHL offers a full range of customised solutions - from express document shipping to supply chain management.

Below are the global facts and figures that show you the scale of the world's largest express and logistics network.

Global Facts and Figures

Number of Employees: around 285,000 Number of Offices: around 6,500 Number of Hubs, Warehouses & Terminals: more than 450 Number of Gateways: 240 Number of Aircraft*: 420 Number of Vehicles: 76,200 Number of Countries & Territories: more than 220 Shipments per Year: more than 1.5 billion Destinations Covered: 120,000

Product

DHL is completely service oriented therefore it does not have its own material movement but that of the customers both the sender, the receiver and also the intermediaries. That means it only involves physical distribution and procurement. Procurement also includes the material needed for packaging such as paper, molded trays and boxes, wooden crates, standard containers wraps, plastic inlays etc. The materials or the goods collected from the senders (including papers, documents, physical goods like clothing, household good, chemicals, exotic animals etc) are weighed, checked for condition, and depending upon its various characteristics it is packed. The goods are then dispatched to their destinations. There is no value addition to the material itself but it is done to the service which is provided ( eg if there has to be a certain package delivered from India to UK the normal services would take about 2 days whereas as a super-fast delivery would be done in about 9 hours)

Some services of DHL are:DHL Document Express (DOX) DHL Express Worldwide Package (WPX) Jumbo Pack and Jumbo Junior Import Express Fashion First

Objective of Research

PRIMARY OBJECTIVES: To know the effectiveness of logistics management of DHL and to bench mark the organization with respect to the industry. To have a thorough understanding of how logistics system works in DHL

SECONDARY OBJECTIVE: To know about Logistics Industries To understand the value of each organization To know whether the customers are satisfied with the existing range of service pattern

SCOPE OF THE STUDY:

In order to understand the concepts of logistics in terms of practical usage and to glimpse into the how a real company or organization uses logistics as a formidable tool to gain customer satisfaction, reduce overall cost and increase efficiency I selected DHL the worlds leading courier Service Company. The study is done only how DHL use logistics function effectively.

References

http://en.wikipedia.org/wiki/DHL_Express#Services http://www.dhl.com/en/logistics/industry_sector_solutions/life_sciences_and_healthcare _logistics/launch_new_products_successfully.html http://www.dhl.com/en/responsibility/environmentalprotection/green_products_and_servi ces.html